Too much has been already said about short sales (31,000,000 results for these 2 key words in Google)! So I wonder, why do we still tolerate their intolerable practices?
Why is it that when the bank processor tells us that we need to lower our commissions below the industry standard before they submit the file to the Bank Negotiator, we give out consent almost grateful that they will in fact submit the file to this high and mighty Negotiator?
Why is it that the banks somehow blame it on us and point to us, Realtors, Appraisers, Inspectors RE Attorneys... the list is long, that we were the instrumental for the way the real estate market is today? Yet, they are oblivious to the fact that the market is determined by supply and demand and what would the Buyer be willing to pay for a certain real estate property. As they are oblivious to the fact, that they gave money to many Buyers who would not even qualify to own a cat, never mind a home!
Why should I as the Seller's agent agree to lower my commission, and in addition to reach out and ask the Buyer's agent to agree to lower theirs, so that the bank would agree to the short sale? Is the Bank aware that I have already spent the bigger portion of my commission on listing, promoting and showing the property for the over 6 months it has been on the market? Is the Bank also aware that the Buyer's agent had spent many days and miles accompanying their Buyer to see myriads of properties before selecting this one?
Let me make this abundantly clear: we did not cause the difficult circumstances of the Seller; we did not cause the market conditions; we did not ask the Bank to lower their interest rates, back then when the Seller bought the property; we did not ask the Government to bail us out when our circumstances changed. Seriously, now let's look at the Banks and try to get a clear picture by posing the following questions:
1. When to US Government bailed the banks out to encourage the lending and boost the real estate sales, thus causing the market to shift, DID THE BANKS DO IT?
2. When the Government bailed the Banks out to revive the US economy, did the Banks reciprocate gratefully by bringing the labor back to the US? Why is it than, when we call our bank in the US, we talk to a rep in Katmandu? And why is it that instead of doing just that, to pour into the local economy by lending money and creating jobs, they DID THE OPPOSITE: limited lending to the fullest, and exported the jobs!
3. Why is it that short sales continue to be handled, or the more accurate description should be "mis-handled" by the bank personnel?
Now, let's look at us, Realtors, Inspectors, Appraisers, we all do our very best to keep our economy alive. We work here locally, when you call a Realtor, you don't talk to a call center in Katmandu, the same goes for an appraiser and inspector. Yet, the banks tried to "put us in order and organize us better", by creating the AMCs who have absolutely no respect for the appraisal profession! Now, here are a few more questions:
1. Why is it that when a Bank appointed appraiser is evaluating a home to qualify for a short sale, the home price is always much higher than the actual market; and when the same bank is sending out an appraiser to value the same home, for an FHA Buyer, the determined value is well below any reasonable market. Is this appraiser using 2 different measuring tools, or 2 different standards?
2. Isn't this all a huge conflict of interest?
3. Why are the Banks allowed to own the AMC's?
Back to the subject of the Banks putting claim on our commissions- the answer is NO! No, you may not require of us, Realtors to reduce our professional fees! You are interfering and disrespecting our binding contracts. And, NO- our commission is not subject to negotiation in a residential contract to purchase. The commission rate is set forth by a different contract: the listing agreement between Seller and Listing Agent.
